Results for the nine months of 2013
On 15 October 2013, the Board of TEO LT, AB (hereinafter – “TEO” or “the Company”) approved unaudited TEO LT, AB Consolidated Interim Financial Statements, prepared according to International Financial Reporting Standards as adopted by the European Union, for the nine months period ended 30 September 2013.
The total consolidated TEO Group’s revenue for the third quarter of 2013 was LTL 181 million (EUR 53 million), an increase by 1.9 per cent over the total revenue of LTL 178 million (EUR 52 million) for the second quarter of 2013, but a decrease by 4.5 per cent over the total revenue of LTL 190 million (EUR 55 million) for the third quarter of 2012. The total revenue for the nine months of 2013 was LTL 542 million (EUR 157 million), a decrease by 5 per cent over the total revenue of LTL 571 million (EUR 165 million) for the nine months of 2012.
EBITDA for the third quarter of 2013 went down by 4.7 per cent to LTL 78 million (EUR 23 million) over LTL 82 million (EUR 24 million) in the third quarter of 2012. EBITDA margin amounted to 43.1 per cent (43.2 per cent in 2012). EBITDA for the nine months of 2013 decreased by 3.6 per cent to LTL 228 million (EUR 66 million) over LTL 236 million (EUR 68 million) for the same period year ago. EBITDA margin slightly increased and amounted to 42 per cent (41.4 per cent in 2012).
Profit before income tax for the third quarter of 2013 eased by 5.4 per cent and amounted to LTL 47 million (EUR 13.6 million) (LTL 50 million (EUR 14.4 million) a year ago). Profit before income tax for the nine months of 2013 was down by 5.7 per cent and amounted to LTL 131 million (EUR 38 million) (LTL 139 million (EUR 40 million) a year ago).
Profit for the period in July-September 2013 amounted to LTL 43 million (EUR 12 million), while a year ago it was LTL 45 million (EUR 13 million), a decrease by 5.9 per cent. The profit margin was 23.5 per cent (23.9 per cent a year ago). Profit for the period in January-September 2013 amounted to LTL 118 million (EUR 34 million), a decline by 4.3 per cent over the profit of LTL 124 million (EUR 36 million) for the same period year ago. The profit margin was 21.8 per cent (21.7 per cent a year ago).
Management’s comment on financial results for the nine months period of 2013:
“During the third quarter of 2013 TEO revenue, compared with the previous quarter, increased by 1.9 per cent to LTL 181 million (EUR 53 million) allowing the Company to reduce revenue decline for nine months of 2013 to 5 per cent, compared with revenue for the similar period last year. Operating expenses’ savings of 6.1 per cent contributed to high EBITDA margin of 42 per cent and increased net profitability. The Company increased its market share in fixed voice and Internet services.
We observe a healthy growth in revenue from TV (10 per cent), IT (9.1 per cent) and Internet services (4.1 per cent), while, following the global trend, revenue from voice telephony services declined.
During the third quarter TEO reached two important milestones: its Internet customer base (including Wi-Fi) exceeded 400 thousand and IPTV customers – 100 thousand. We believe this is a result of the Company’s commitment to provide best quality next generation fiber-optic network and services.
TEO continued to improve its services not only on FTTH technology, but also on copper network by increasing speed on its DSL broadband. For both – residential and business customers the Company introduced Internet security services. Residential customers can now enjoy even wider selection of TVs, tablets, laptop computers available.
The Company finished the first phase of Wi-Fi for Schools project during which over 300 schools were equipped with Wi-Fi access points. We look at widening of TEO Wi-Fi network coverage in public places as our strategic direction which will make it possible for us to attract more Internet customers in the future.”
ENCL.:
- TEO LT, AB Consolidated Interim Financial Statements for the nine months period ended 30 September 2013.
- Presentation of TEO LT, AB results for the 9 months of 2013.
Darius Džiaugys,
Head of Investor Relations,
tel. +370 5 236 7878
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